0001|                         HOUSE BILL 549
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
    |
0003|     1996
    |
0004|                         INTRODUCED BY
    |
0005|                           BEN LUJAN
    |
0006|     
    |
0007|     
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     RELATING TO TAXATION; AMENDING THE TAXATION AND REVENUE
    |
0013|     DEPARTMENT ACT TO PROVIDE FOR COOPERATIVE AGREEMENTS WITH SANTA
    |
0014|     CLARA PUEBLO; AMENDING THE GROSS RECEIPTS AND COMPENSATING TAX
    |
0015|     ACT TO PROVIDE FOR A TAX CREDIT.
    |
0016|     
    |
0017|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0018|       Section 1.  A new section of the Taxation and Revenue
    |
0019|     Department Act, Section 9-11-12.1 NMSA 1978, is enacted to read:
    |
0020|       "9-11-12.1.  [<u>NEW MATERIAL</u>]  COOPERATIVE AGREEMENTS WITH
    |

0021|     SANTA CLARA PUEBLO.--
    |
0022|            A.  The secretary may enter into cooperative
    |
0023|     agreements with Santa Clara pueblo for the exchange of
    |
0024|     information and the reciprocal, joint or common enforcement,
    |
0025|     administration, collection, remittance and audit of gross
    |
0001|     receipts tax revenues of the party jurisdictions.
    |
0002|            B.  Funds collected by the department on behalf of
    |
0003|     Santa Clara pueblo in accordance with an agreement entered into
    |
0004|     pursuant to this section are not funds of this state and shall
    |
0005|     be collected and disbursed in accordance with the terms of the
    |
0006|     agreement, notwithstanding any other provision of law.
    |
0007|            C.  The secretary is empowered to promulgate such
    |
0008|     rules and regulations and to establish such procedures as the
    |
0009|     secretary deems appropriate for the collection and disbursement
    |
0010|     of funds due Santa Clara pueblo and for the receipt of funds
    |
0011|     collected by Santa Clara pueblo for the account of this state
    |
0012|     under the terms of a cooperative agreement entered into under
    |
0013|     the authority of this section, including procedures for
    |
0014|     identification of taxpayers or transactions that are subject
    |
0015|     only to the taxing authority of the pueblo, taxpayers or
    |
0016|     transactions that are subject only to the taxing authority of
    |
0017|     this state, and taxpayers or transactions that are subject to
    |
0018|     the taxing authority of both party jurisdictions.
    |
0019|            D.  Nothing in an agreement entered into pursuant to
    |
0020|     this section shall be construed as authorizing this state or
    |
0021|     Santa Clara pueblo to tax persons or transactions that federal
    |
0022|     law prohibits that government from taxing, or as authorizing a
    |
0023|     state or pueblo court to assert jurisdiction over persons who
    |
0024|     are not otherwise subject to that court's jurisdiction.  Nothing
    |
0025|     in an agreement entered into pursuant to this section shall be
    |
0001|     construed as an assertion or an admission by either this state
    |
0002|     or Santa Clara pueblo that the taxes of one have precedence over
    |
0003|     the taxes of the other when the person or transaction is subject
    |
0004|     to the taxing authority of both governments.  An agreement
    |
0005|     entered into pursuant to this section shall be construed solely
    |
0006|     as an agreement between the two party governments and shall not
    |
0007|     alter or affect the government-to-government relations between
    |
0008|     this state and any other Indian nation, tribe or pueblo."
    |
0009|       Section 2.  A new section of the Gross Receipts and
    |
0010|     Compensating Tax Act is enacted to read:
    |
0011|       "[<u>NEW MATERIAL</u>]  CREDIT--GROSS RECEIPTS TAX--TAX PAID TO
    |
0012|     SANTA CLARA PUEBLO.--
    |
0013|            A.  If on a taxable transaction taking place within
    |
0014|     the exterior boundaries of Santa Clara pueblo a qualifying gross
    |
0015|     receipts sales or similar tax has been levied by the pueblo, the
    |
0016|     amount of the pueblo tax may be credited against any gross
    |
0017|     receipts tax due this state under Section 7-9-4 NMSA 1978 on the
    |
0018|     same transaction.  The amount of the credit shall be equal to
    |
0019|     one-half of the rate of tax imposed under Section 7-9-4 NMSA
    |
0020|     1978.
    |
0021|            B.  A qualifying gross receipts sales or similar tax
    |
0022|     levied by the pueblo shall be limited to a tax that:
    |
0023|                 (1)  is substantially similar to the gross
    |
0024|     receipts tax imposed by the Gross Receipts and Compensating Tax
    |
0025|     Act;
    |
0001|                 (2)  does not unlawfully discriminate among
    |
0002|     persons or transactions based on membership in the pueblo;
    |
0003|                 (3)  is levied at a rate not greater than the
    |
0004|     total gross receipts tax rate imposed by this state and its
    |
0005|     political subdivisions located with the exterior boundaries of
    |
0006|     Santa Clara pueblo;
    |
0007|                 (4)  provides the following credits against the
    |
0008|     tribal tax due for state gross receipts taxes due from the same
    |
0009|     person or on the same transaction:
    |
0010|                      (a)  a credit equal to the full amount of
    |
0011|     all applicable local option gross receipts taxes imposed under
    |
0012|     New Mexico law by political subdivisions of this state located
    |
0013|     within the exterior boundaries of Santa Clara pueblo; and
    |
0014|                      (b)  a credit equal to one-half of the
    |
0015|     rate of tax imposed under Section 7-9-4 NMSA 1978; and
    |
0016|                 (5)  is subject to a cooperative agreement
    |
0017|     between the pueblo and the secretary entered into pursuant to
    |
0018|     Section 9-11-12.1 NMSA 1978 and in effect at the time of the
    |
0019|     taxable transaction."
    |
0020|                              
    |